Staffing 360 Solutions Inc. (NASDAQ:STAF) Stock Suddenly Falls: Here is Why

Staffing 360 Solutions Inc. (NASDAQ:STAF) fell 20% in the last session. Recently the company announced plans to effect a reverse share split effective June 30, 2021. The company’s common shares continue trading on the Nasdaq Capital market under ticker “STAF.” The stock started trading on a split-adjusted basis on July 1, 2021, after the market opened. The decision to effect the reverse stock split received approval during a special shareholder meeting held on June 21, 2021.

The reverse stock split will see every six common shares of the company’s outstanding and issued common shares converted into one outstanding and issued common share without any par value per share change.

As a result, shareholders holding shares through a brokerage will equally have their stock adjusted automatically to reflect the six to one reverse split. Notably, the reverse split will uniformly affect shareholders, and there will be no change in the percentage interest in Staffing 360’s equity. So in the coming days, STAF is a stock to watch.

Market Reaction:

On Wednesday, STAF stock slumped 20% at $3.06 with more than 7.28 million shares, compared to its average volume of 2.85 million shares. The stock has moved within a range of $2.9300 – 3.1900 after opening the trade at $3. Over the past 52-week, the stock has been trading within a range of $2.8700 – 20.0400.